Court blocks Minnesota’s blanket ban on prediction markets, allowing partial restrictions

A federal judge issued a preliminary injunction blocking Minnesota’s attempt to ban prediction markets, ruling that many event contracts traded on Kalshi and Polymarket qualify as swaps under the Commodity Exchange Act and fall under the CFTC's exclusive jurisdiction; the court said Minnesota may still pursue a partial ban on certain types of contracts that do not fit the swaps definition, and the case will proceed to determine the merits with potential appeals.